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tv   Markets Now  FOX Business  January 10, 2013 11:00am-1:00pm EST

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>> >> #. stuart: in my opinion the story of the day thus far has been the 1 in 4 children who are on food stamps in the united states, disgraceful, appalling entitlement society. however, there are other candidates for top story of the day starting with: >> i would say for me it is the sandy bill and the reason is that the g.o.p. does not own the narrative on these issues so i feel like i need to do their job for them and point out the pork in the senate bill and point out some of christie's missteps here. charles: i agree with you. the fact it is not the story of the day. it is the story of the great
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society. we are supposed to be helping people and it is just getting worse. stuart: dagen and connell, it is yours. connell: thank you stuart. dagen: i'm dagen mcdowell. connell: the president looking to make his choice for treasury secretary official today. dagen: also the talk of washington, the flu, lawmakers taking to twitter to urge the public to protect themselves from the spread of this terrible outbreak. connell: and the chamber of commerce president he wants some changes to dodd frank, some thoughts about economic growth. he's on with us live this hour to talk about it all. dagen: top of the hour, stocks now and every 15 minutes. nicole petallides at the new york stock exchange with what you got. nicole: i'm looking at a market that's virtually flat right now. s&p 500 up 1/10 of 1%. some names helping the dow along include intel and also jpmorgan and bank of america so shows you the financials are doing well. a lot of traders talk about ecb rate decision abroad. seeing the dollar down dramatically and that is helping
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commodities in particular move to the upside. also watching a lot of the retailers as we get in a lot of retail sales numbers. tiffany's for example is a name that's been on the move. that's been to the down side. while urban outfitters has been hitting new highs. we're watching retail very carefully. overall the markets are virtually flat at this moment. back to you. connell: thanks. we have some breaking news from washington. rich edson joins us from there because the fed just now releasing reserve bank and transfers to the treasuries for last year. we will see what we can make of the numbers. rich: reserve banks provided payments of approximately 88.9 billion dollars of their 2012 income. that went to the u.s. treasury. these are preliminary unaudited results. they had 91 billion dollars worth of estimated net income. 80 1/2 billion of that coming from income on securities acquired through open market operations. 13.3 billion dollars of that coming from the sale of u.s. treasury securities. some of the expenses include 387
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million dollars to fund the new bureau of consumer financial protection, known as the cfpb which by the way just put out new mortgage rules this morning. the fed making the federal government money about 88.9 billion dollars. back to you. connell: more to come on that breaking news. rich live at the white house. dagen: president obama will nominate his chief of staff jack lew as the next treasury secretary a little more than two hours from now. connell: joining us now is from the "wall street journal." >> he will be directing economic policy for the president and he's a long-time washington insider. he worked for tip o'neil. he worked for bill clinton. he's worked on the budget for president obama. [talking over each other] >> there is a revolving door there. he did go in 09 and he came out
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with a lot of money despite the fact that citi bank was limping along and had to be helped out by the government. dagen: when he worked just as one example in the clinton administration he was considered reasonable but not now. why? >> i think the big part of it is how he performed when he worked for president obama in the first term. but it's also i think most people expect him to be very much like an alter ego of the president. he subscribes to the ideas that the president has, that the big problem in this country is not how to create wealth, but how to redistribute it. that's really our challenge. just have to figure out how to get the spread the wealth around more. that will be their main goal. this is really worrying the business community and a lot of jobless people. connell: sometimes we don't know what kind of influence a chief of staff really has on a president, but sometimes they can the most influential person because they spend so much time, even more so than a vice president or anyone else. is that the case do you think with jack lew or he's following
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the lead given by this president because that would matter as he heads over to treasury? >> sure, as dagen mentioned, he did when we worked for clinton have kind of a different view. connell: he's following the president? >> he's going to reflect the president's interests which are a larger role for government in our lives and as i said more distribution. dagen: he is seen by the right as being intractable, being very stubborn, very tough negotiator, witnessed in the 2011 debt ceiling fight. how do you think it plays out with the debt ceiling fight and the sequestration and the budget? >> yeah, well, i think it is very troubling because, you know, one of the conversations we've been having is that there has to be more compromise in washington if we're going to get through some of these things, and i think that this -- choosing him as treasury secretary sets us up for some very bitter fights. you know, he has basically blamed the republicans all along as the president has, and, you
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know -- for example, he's blamed the republicans in the senate for not passing the budget. that's completely wrong. the budget is a privileged piece of legislation that doesn't require 60 votes to get through. that's something that the democrats can do. but he wants to achieve the president's goal and he will fight the republicans every step of the way. i don't think he's interested in in any compromise. connell: he's a big part of those fights, maybe not this most recreent -- recent time, b the previous go around. >> also on the ceiling and sequester you are not going to see somebody who is willing for example to look at entitlement reform which is a big important issue for the republicans, they feelly feel that if -- they really feel if you don't get entitlement reform, you do not start to solve this fiscal problem. he's made it very clear that apart from going around the edges, he's not interested in
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changing that paradigm. connell: thank you very much. dagen: great to see you. when geithner as treasury secretary first gave a speech, the markets spiralled downward. that was then. what about now with jack lew? brian jacobson chief portfolio strategist at wells fargo joining us now from milwaukee wisconsin. at first look, what do you think? >> well, i think this is an example where we will probably see history not necessarily repeat but it will most likely rhyme with what happened when geithner made his first speech. i'm not all that confident that lew is going to be a good replacement for geithner. i think he's not a very unifying individual. he's more of a polarizing figure. and it makes it more likely that the next two years until the midterm elections that we could see more battles and skirmishes in washington, d.c. as opposed to fewer. dagen: what would you like to see as a stock investor? >> a treasury secretary who is more focused on building
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compromise. but think the lesson we learned in the debate last year when there was discussion about debt ceiling is that lew is one of these types of individuals who very politically savvy but that doesn't necessarily equate to being a statesman or looking out or if the best interest of the nation as well. it seemed as though when president obama was willing to compromise on certain things, lew was in the background perhaps whispering in his ear, don't compromise, go for more. dagen: we were just talking to our last guest from the "wall street journal" editorial page. talking about the president's goal, in the "wall street journal" today. do you buy that? is that the nation that the president wants to see in the next four years? >> well, i'm not sure if it's the nation that he wants to see in the next four years. maybe over the next 40 years.
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i'm not exactly sure what his vision for america is. but i think that's the path that we have gone is more towards an entitlement nation. i mean, let's face it -- let's face it, that was the whole purpose of affordable care act, make it more entitlement, social security, medicare, medicaid, now affordable care act, the government can play an important role in people's lives but the question is whether or not that's the most efficient way to have the government be delivering services and to perhaps, you know, as the president often times says in terms of healthcare reform, that he wants to bend the cost curve. i fear some of this intervention is more bending the cost curve the wrong way. dagen: it was great to see you, brian. thank you for weighing in on jack lew. we will see you soon. connell: this herbal life center we have been covering is still front and center. the company trying to put out a fire started by an activist center.
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dagen: we will also talk to congressman rangel on the cabinet. connell: let's take a look at some more markets. a lot more coming up including a report from boston on this flu outbreak. keep it here.
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connell: you look at things down in washington and capitol hill seems to be concerned like we all are about this hard-hitting flu virus sweeping the nation because the california congressman sent a tweet out a picture of himself getting a flu shot, telling his followers to keep an eye on the cdc's
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website. dagen: at least he's not crying. after boston's mayor declared a public health state of emergency, congressman mcgovern tweeted the flu season is hitting massachusetts hard. some great information from the cdc on what you can do to stay healthy. fox news's molly line is live at boston medical center with much more. how bad is it, molly? >> connell and dagen, it is a very serious situation here in the city of boston, so serious that the officials here have declared a public health emergency. 700 people across the city have been diagnosed with the flu this flu season. that is compared to just 70 last flu season. they are urging people to go out there and get their flu shot. the mayor saying it is the best way to protect yourself and your family. there have been 18 deaths statewide. four of the people who have died died here in boston. that is compared to just one death here in the city of boston from the flu last year. boston health commissioner urging people to take this
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seriously. the strain is called type a influenza strain, it's supposed to have more serious symptoms, a worse outcome overall, but the cdc says it is actually covered in this year's flu vaccine. so if you go and get the flu vaccine, it should help to mitigate the chance you will have the very serious flu strain. dagen and connell? connell: how are the hospitals handling the increase -- so many more patients than they would usually have, i would think. >> well, part of the effort here is to really kind of the stop of the spread of the flu and hopefully tamp down what's happening here at the boston hospitals. they have had an incredible influx -- some hospitals had to open additional wings, additional rooms, they are in a juggling phase right now. boston medical alone, they have had 85 people in this season in this year and over at massachusetts general hospital, it's a tough situation there as well. take a listen. >> it's a very crowded emergency
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department, and it's significant flu season. certainly we're on pace to have a flu season at least as bad as one we probably saw about five years ago and maybe as bad as one about ten years ago. >> one of the toughest populations they are keeping a particular eye on are those that live in the urban areas, tightly packed areas where a lot of people have lower incomes and might feel the need to go to work even if they should be staying home. that create as domino effect -- creates a domino effect, they infect their coworkers. they are encouraging people to stay home and get well. back to you. dagen: moll line reporting for us -- molly line reporting for us in boston. thank you very much. connell: we have team coverage on the herbal life story. dagen: nicole petallides as the latest on the stock for us. charles payne brings us his analysis of this soap opera. first we start with adam shapiro in midtown manhattan and the
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latest from today's investor conference. adam: herbal life just spent two hours making the case why they are a legitimate company not a pyramid scheme as mr. ackman has accused them. in fact the ceo michael johnson actually said this is quote an unfortunate slander against our company, and they've hired several ad agencies to again a quote counter the incredible negativity that has been thrown at our company. they also threw up some hard evidence in their eyes that this is not a pyramid scheme. for instance spending 44 million dollars every year on research and development and also pointing out that roughly 83% of former distributors have a favorable view of herbal life and 63% of those former distributors would recommend herbal life to a friend or a family member in which to become a distributor. we spoke to an investor and an analyst who looks at herbal life and says this is a strong company and he's confident. >> they don't pay anything for
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recruiting. the evidence that they only pay commissions to their distributors for the sale of product. adam: and of course herbal life making the case that majority of their sales are worldwide to people consuming their products. they are not, quote, garage stuffing or channel stuffing. back to you. dagen: adam thank you for that. now let's go to nicole petallides with more. nicole? nicole: with each headline that comes out of this whole story, dagen, we have seen the stock really been push around. yesterday we heard about investment from a hedge fund manager, the stock jumped. back in december when bill ackman, aaccused of them this pyramid scheme, then we saw the stock drop. today the stock is higher, up nearly 2%. as obviously the company is fighting back and saying it is in fact a legitimate company. the stock right now is at $40.54
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a share. by the end of december, it was a $24 stock. so it's certainly a back and forth, and it continues. but for right now the stock is to the upside. back to you. connell: charles payne is here in studio to kind of wrap up -- or an analysis of what has turned into quite a soap opera. charles: i have to tell you something, the dan lobe aspect of it really gave this thing a whole new life because you do have a legitimate battle of the titans, if you will. i have some key things i want to show you. let's talk about the key number from both of these guys. the key number from lobe is 68. the key number from ackman is 0. that's the price target from these guys. have you ever seen two brilliant guys that far apart? key words, ackman of course calls it a pyramid scheme. loeb says that's preposterous that ftc would sit on this for 30 years.
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ackman says the product prices are so inflated. loeb says look at starbucks, you can go around the corner for a cup of coffee for a buck. that's the way the market works. if people want to pay more for it, they will. obviously ackman says ftc has been asleep. loeb says they have been working. to nicole's point, it's made a huge move. whoever got in under 30 is smart, smart enough to get in at that level but probably risk takers might be selling into some of this. so it continues. but obviously a $68 target suggests a whole lot of upside if loeb is right and 0 target means if you chase it here, you could ultimately be in trouble. i'm not in the stock either way. connell: 68 or 0. charles: i looked at this thing so hard in the low 30s but didn't pull the trigger. dagen: you can have inflated
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prices if you have a sales force, again it's like stocks products are sold not bought. charles: 3 million. according to the ftc, it's a pyramid scheme if most products are only going to distributors and not through the channels, so apparently that hasn't happened yet officially. connell: follow this to the conclusion, whatever it might be. thank you. residents in virginia dialling 911 after spotting what they believed to be a lion on the loose. we have details coming up for you. dagen: come on, people, does that look like a lion? u.s. chamber of commerce ceo meantime calling our nation's debt the biggest threat to our economic future. he's here to talk with us. speaking of our future, how does the dollar look? you know, it's a sad state of affairs that europe is so lousy and euro is still at $1.32. [ woman ] if you have the audacity to believe
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>> at 24 minutes past the hour, hello there, i have your fox news minute. israel's president perez is warning of a new palestinian uprising if israel doesn't do more to reach a peace accord. it is the second time in less
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than two weeks he has criticized prime minister benjamin netanyahu before the january 22nd elections. a commuter bus and mini school bus collided in new jersey this morning. at least 7 people on the commuter bus were injured and hospitalized. there were no children on the school bus. and a shift in ice appears to have freed the dozen killer whales who were trapped in the hudson bay ice about 900 miles north whales were taking turns bobbing for air out of a single break in the ice for the past two days. an ice breaking rescue was planned when the wind shifted overnight moving the ice and creating an opening for the whales to swim to safety. love that. those are your headlines. back to connell. connell: thank you very much. we have talked a lot about gun control and guns and gun owners have been coming under a lot of pressure. kra california teachers fund taking its first step to dump investments in gun companies. a motion has been made that will
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begin this process. it comes after the pension fund discovered it was invested in the company that manufactured one of the weapons used in the newtown shooting. nissan getting a loan from u.s. federal government. it is going to use that money to begin u.s. production with its all electric leaf car at a plant in tennessee. it already has a battery plant in the united states and plans to build the new car assembly plant right next door to that one. last year nissan sold nearly 10,000 models of the leaf. that was up 1 1/2% from the year before. and then there's this, take a look at this video. at first glance, you may think well, this looks like a lion. right dagen? dagen: no it doesn't look like is a lion. it is a dog. connell: i see. but many people in nor folk virginia dagen's home state they were calling 911 reporting there was a lion siting. -- lion sighting. the police quickly called the local zoo.
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as dagen pointed it out, it is a dog. nice looking dog. the owner had taken him to the groomers and the owner is a big fan of old dominion university, their mascot is a lion, said make my dog look like a lion, this is what they came up with. dagen: as my daddy might say, they called the police because folks are stupid. connell: the poor dog. dagen: you know what? the dog doesn't care. it is a dog. and not a lion by the way. dagen: tom donahue unveiling his new agenda to attack our nation's fiscal challenges. that's a nice way of putting it. -- to tackle our nation's fiscal challenges. that's a nice way of putting it. >> congressman charlie rangel will also be joining us to talk about the make up for the new cabinet.
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you also said that the imperative of economic growth should not be in after that. it must be job one. are they complementary? >> it is very clear that you need growth to create jobs and we are running at a growth much lower than what we need to create jobs. we have 23 million people in america that are either looking for a job, working part-time, stop looking. we need to do this. if you do not deal with that debt, you will not get the level of investment, level of job creation, level of growth that you need to know. what investors want to know, what trader partners want to know, is that you can deal with the debt. connell: you can raise even more revenue. some symbols had to .6 trillion
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revenue if you add it all up. >> if you do it on a tax side, you do. everyone has been talking about the two buckets. it is very hard to get there without destroying the economy. we are proposing a third bucket. it is energy. we have it more than anyone in the world now. we traded 1.75 million jobs in fracking natural gas alone. there is great opportunities for us to put people to work. we can bring cash to the federal government. this is the way to put it
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together. we have the ability to do it. the states are doing it. we have to open up some federal land. we have to get the permitting process right. we have to get people to understand this is being done in an environmentally friendly way. we have to go offshore, we have to go to alaska, we have to be, energy economy. connell: thoughts on jack lew. it is an important nomination. >> jack lew is an accomplished professional. he has been the head of omb twice. he has been the chief of the white house staff. my favorite is you work for the speaker of the house.
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he understands congress. we think jack is a guy you can work with. connell: no big concerns about anything in the past from him? >> no. jack is a tough though though she had her, but the bottom line is simple. it is not the person. dagen: new rules at protecting mortgage borrowers. they do much more.
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connell: what does that mean? >> they are ushering in a new term for mortgages called the qualified mortgage. here is what a top government regulator told richardson about these new rules. take a listen. >> putting some common sense rules in place so that does not happen again is a big part of what they are trying to get done. >> here are the new rules. they must verify this. they have to verify a borrower's ability to repay. they have to look into, verify and document income, assets, and job status.
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the other thing is, look at this, banks will have to offer no longer no interest loans. they have to make sure that debt payments cannot ablow 43% of a borrower's income. they have to make sure that those are prime rate woes. it does not stop -- it may standardize the 30 year loan. dagen: no money, no job, lots of debt. here is a mortgage. connell: general motors turning to japan. dagen: is your next slide on a dream liner? michael boyd is here to talk
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about boeing's big moneymaker. connell: the president on the hunt, maybe, for a few good women for his cabinet. we will be talking to charlie rangel about that. 1.9% on the ten year. the logo this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally.
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♪ >> here is your fox business brief. jobless claims unexpectedly rose last week. claims tend to be vulnerable around this time of year because of holidays and seasonal layoffs. joining forces on developing a next generation pickup truck. they have signed a memorandum of understanding to start negotiations. at one point, general motors held a 49% stake in the zoo zoo. the same survey also shows potential employees are making outrageous mistakes. 62% of employers are appearing interested.
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that is the number one turn off. that is the latest from the fox business network. congressman charlie rangel still to come. ♪ spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd spiriva helps me breathe better.
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(blowing sou) ask your doctor about spiriva. dagen: boeing defending the safety of its 787 dream liner jet. a probe opened by federal safety regulators. mike boyd is joining us now from denver with four to make of this. what do you make of this? >> it is a new airplane. new airplanes have glitches. this is a breakthrough airplane so it is getting a lot of scrutiny as things happen. we will be working through this for a couple months and after that, we will never hear about it again. dagen: they have problems with the wings. there were development problems. it is not unwarranted?
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>> no. it is a whole new supply track. it is a whole new composite airplane. you will have to suspect some of those things. it has been flying for several months. i think it will work out. again, it will be one of those issues where boeing will have to make sure that there are no more of these glitches. dagen: right and people will be tweeting about it and simultaneously. >> boeing have taken the lead in sales with airbus. there is also a new c-series jet.
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boeing will have to worry about competition across the atlantic as well as of north in canada. that will be interesting to see in the next coming years. dagen: why should flyers care, is that all, about this new boeing planes and the new bombard a year just as well? >> on this new 787, you still have about 17.5 inches for your toosh. connell: you have very crowded planes, where passenger traffic will be flat, ticket prices will continue to be quite lofty depending on the time of year. >> there is no question, they will be cutting our capacity in
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the coming years. demand will exceed supply and some of the cases. dagen: m, it was great to see you. thank you so much. mike boyd. i want to think that american airline attendant that was so rude to me the last time i flew. i asked if they had energy drinks on the plane and she looked at me, well, you know -- connell: to nicole now. nicole: i think that is a very valid question. energy drinks are very popular. here are some movers for you. mumia sales doing really well. of 19% on the day. urban outfitters doing well.
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grabbing attention with some of their other names. tiffany on the lower end of their forecast. amazon, despite the fact that you have the analysts now over at deutsche bank, that one started off higher, but looking off lower. ford motor increasing its quarterly dividend. it is hitting a 52 week high. back to you. connell: thank you. dagen: out as the secretary of labor. leaving just a few women left. congressman charlie rangel joins us next. connell: first, let's take a look at some of the winners over at the nasdaq. ♪
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dagen: all the presidents men, literally, john kerry is mr. obama's choice to replace hillary clinton. jack lew will replace timothy geithner. chuck hagel at the pentagon. the president will be down to how many women? you will have the labor position to fill.
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again, you have hillary clinton leaving, connell and i were going through the list. there are few women in cabinet positions. connell: charlie rangel is here with us to talk about this. is this a big problem for the president, the lack of diversity >> i spent so much time making fun of republicans and the action not women and jewish people in the congress and blacks and hispanics, it has just been unreal. i will have to explain why our picture looks the same. i do not think we should just look for women. we should have qualified people out there. we have not found them. that is just not true. it is a problem. it is a problem that can and i
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am convinced will be corrected. dagen: how will it be corrected? >> first of all, we have the president. nobody would rather have somebody like that speaking out for him. we have an opposite thing. we know the commitment is there, but the action is not there with the photographs. we do not need that as democrats. we really don't. connell: you do not want to do it in a token fashion. you do not want to pick them because they are women or because they are a person of color.
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there are three white men taking over in those positions. >> to do what you suggested would be just as bad if we just went out looking for gender and looking for color, rather than what is good for the united states of america. we are going to have to try to find a way that people do not feel excluded. this is bigger than just the president of the united states. these are parents talking to their kids. opening up the magazines. opening up the newspapers that you can do this. anyone can become president. you can pick up a couple billion dollars on the way to the white house. this picture shatters that. we should not have that restricted to the office of the president. when you have an opportunity to show how great this mosaic is. how many jews we have. you have a responsibility to put them forward.
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this is especially so when you do four years ago, this day, god willing was coming. here we are. dagen: what do you know about jack lew? >> i know too much about him. [talking over each other] [ laughter ] >> i knew him when he worked with oatmeal. i do not see if you're putting together pieces of america that you would have a guy like jack lew there. he knows the government. there is no reason anybody would find a reason for him to not be there. connell: his background, the clinton administration, he came
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there with the same job with the obama administration. he used to be more "reasonable." he is a much tougher negotiator. >> i suspect no matter who the president is that someone has to think of some reason to raise criticism. dagen: you do not believe it will be easy? >> unlike my good friends, you know, it reaches a point that you can say a whole lot of things in the back room, but you are embarrassed to bring those things up forward. the president is entitled, republican or democrat, to select his democrat. you should have pretty darn good reason rather than i think he has changed.
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i think you will get through the senate. connell: congressman wrangle, it is always great to see you. dagen: charlie rangel. connell: there are people making money on this flu outbreak. dagen: cheryl and dennis ahead with the sick stock pick. really? how you could make some money. ♪ [ male announcer ] where do you turn for legal matters? maybe you want to incorporate a business. orrotect your family with a will or living trust. and you'd like the help of an attorney. at legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. get started at legalzoom.com today. and now you're protected.
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dennis: im dennis kneale neil. cheryl: hello everyone. i am cheryl casone. jack lew will be nominated by the president to replace timothy geithner. whether he has the right credentials to do this job. dennis: we are live from the herbalife convention.
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cheryl: we are live in chicago where the fast food giant is testing out a big seller. dennis: stocks every 15 minutes. nicole petallides. stocks of a second day. nicole: some of those products really are revenue generators. we will see what happens with those wings. the dow jones industrials are up right now. the s&p 500 up a quarter of a percent. the tech heavy nasdaq is pulling back a little bit. the dollar getting pounded today. commodities moving higher.
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the move is so sick of forget and, obviously, tough for shareholders of molly corporation. cheryl: we will get more from charles payne. we have a fox business news alert right now. you are looking at a live picture of the white house. president obama will nominate jack lew to replace timothy geithner. a job that will require him to work closely with the financial industry. joining me now -- mark, i will start with you. he spent two years that citigroup. what that fly with congress considering the nature of the job as treasury secretary? >> i think you have to start with recognizing that timothy geithner was widely disliked on
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both sides of the aisle on capitol hill. it is probably an improvement in the negotiations. quite frankly, i was skeptical of geithner's experience. he was a failed regulator at the new york fed where he thought the solution was to throw money into bailouts. they certainly should have somebody who understands wall street. i think geithner, if anything, was too close to wall street. jack lew is not my first choice, but given you are going to have a democrat, i can imagine a whole lot worse. cheryl: at least with this geithner, he understood the mechanics of wall street. when a financial crisis that hit back in 2008, they use that
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experience too, frankly, save the nation's health and the markets overall. >> i think this is work you and i will disagree. i do not think the actions saved our financial system. you know, geithner was the head of the fed leading up to the crisis. the fact that the crisis happened is a massive indication of failure. cheryl: brian, i want to ask you that same question as well about the experience that geithner had. two years at citigroup, is that enough for the republicans in congress to say, sure, he should be the next treasury secretary? >> it is concerning. i tend to agree with mark on the policy that geithner brought.
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when you look at his experience package treasury and then the new york fed and in between at the world bank, he had a very extensive rolodex. jack lew contacts are very much washington peace center. that lack of experience, especially in a crisis situation and the ability to pick up a phone and call somebody to have a relationship already in place -- look, you will be able to build those relationships over time. cheryl: i have seen that he would have to lean on bernanke quite heavily because of his lack of experience. he did run the budget management two times he was up there under
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clinton. again under president obama. does this please help him and that debt ceiling debate which he will be a key figure in if he is nominated? >> i think the president is nominating him for the debt ceiling, entitlement and tax reform debates. this is exactly why jack lew is being capped. cheryl: jack lew has come out in the past and spoken publicly about debt reduction. that does not seem like something the president wants to address. he will be looking for more revenue to address the debt ceiling. can he effectively as a guest to his boss while managing the expectations of republicans? >> that is one of the fundamental problems here.
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i am not saying it is unimportant, but it is of secondary importance of who is president. he is not an independent actor. he put a deal for that was laughable. i think geithner was never given the room to negotiate beyond that. to me, the question is, if jack lew had the authority to negotiate issues, that is a second thing. if the president sent them off with no ability to negotiate and the president starts with we do not have a spending problem and it is all revenue, then jack lew is doomed from the very beginning. cheryl: we will be watching every step of it. thank you very much. we will hear from the president a little less than 90 minutes from now. dennis: all right. forget the u.s. look overseas. how is it time to buy international stock.
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robert, i thought china was slowing down, europe is falling apart and now you are telling me to invest their. >> yes. the china numbers today are expecting 5%. it came out at about 14%. you are talking about a gdp that will be about seven or 8% compared to the u.s. at two or 3%. from a peer evaluation standpoint, you are looking at a discount to the valuation of the s&pat 20 to 30%. right now it is time to step back from the markets. dennis: does that mean you are avoiding europe? >> no.
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we have some money in europe. one of the key metrics we are looking at, we just want to be investing in companies that can tap into this emerging market consumer. two names we would like here in the u.s. are coca-cola and disney. i just came back from a disney cruise, the fantasy, 4000 passengers they put on the ship. the large portion of the people on that were coming from south america, asia and let me tell you, they were carrying coach bags. very brand conscious over there. dennis: let's start with your eem be. >> yes. we like that a lot. that came out back in 2011.
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a lot of people will be used to the eem. if you put those two together, on an absolute basis, the emv has outperformed the eem by ten percentage points since 2011. it has done so with a lot less volatility. that will give you that broad-based exposure if you are looking to allocate into those markets. dennis: you like that emv and the eem. we could go at this with nice friend like disney and coke. >> two great ways for people who are maybe a little skeptical as far as jumping directly into the markets. coca-cola here i think we have taken for granted. again, if you take a look at some of these emerging rockets, that is really an aspirational brand. those people want to be seen with a coca-cola in their hand.
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disney, as i mentioned, they have great exposure fight there to south america and also, do not forget, they will be opening up their first china themepark in 2015. they will have access to another billion consumers they are. the great way to play it is with those two names domestically. dennis: thank you for being with us. robert luna. >> thank you, dennis. cheryl: well said. google is investing $200 million on a wind farm in texas. they have already made multiple renewable energy investments over the past few years. it is a pure investment strategy by google. the farm is called the spinning spur wind project. it has been up and running since the end of last year. dennis: no government incentive.
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no government subsidy. google just saw value and decided to invest where value is. maybe private enterprise and set of government, maybe that is the way to go. i'll be darned. cheryl: it is one of the worst lose in a decade. ask michael eiger. no, you did not have the flu. i am sorry. it is sending chills throughout the whole economy. dennis: linkedin cleaning up on oscar nominations. cheryl: we are live at the herbalife conference. dennis: as we do every day at this time, let's look at oil. ♪ ♪
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cheryl: it looks like the dell is trying to make it a six day in a row. phil flynn is in the pits of the cme. you have charles payne here in studio helping you make some money on molly corporation. dennis: first, nicole petallides on the floor of the new york stock exchange. nicole: there is a lot to look at today. let's start off with some of the retailers. they have beat their own forecast. the stock is up 4%. tiffany with a disappointment. they did not do as well as they had hoped. also the parents of dress barn, justice, that is at almost 7%.
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aeropostale gave a disappointing profit outlook. quickly, here is a look at your dow, s&p and nasdaq. phil flynn in chicago. >> the crude oil is on fire today. it started today with some chinese data. they are importing a lot more oil. they were up a whopping 16% in the month of december. we are going to see more imports of oil in china. the only thing that slowed us down a little bit was the revisions. last week if you thought it was cold, you were right. especially if you look at the natural gas inventories. we have the biggest drawdown. the thermostats were hot. i am sure you were turning yours
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up. cheryl and dennis, back to you. cheryl: i turned it up, but i had to turn it back down. dennis: it is time to make some money with charles payne. he is following up on molycorp. charlie: i mentioned it in november. the by signal was 12. they lowered their guidance for the year. the street is really concerned about it. it is a capital intensive business. they may have to go up and raise even more money. that would obviously, you know, then out the shares even more. when the dust settles, no pun intended, when the dust settles, i would think that the rumors they come back around. if you are not in it, i would not buy it.
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i would not sell it because i think it is oversold. i do not think this guy will be around for long term. i do believe that something will happen here. they will have to seek out a large mining operation with deep pockets. dennis: what investors are missing is that these guys have a hold of one of the rare ones that is not controlled of the chinese. charles: electronic products, it is used on so many different products. it is the biggest complex in the world. china continues to lower this export and keeps increasing export restrictions. they are thinning out their availability. as soon as they turn around, this stock could make a real swift move to the upside. cheryl: i was looking at the one year chart. a pretty big drop off.
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>> the average retail investor will look at that and say, i do not think i want to take a chance on that. charles: the average person probably should not take a chance on it. if i bought it there, i could have quit working. it depends on how you pull it up. the average investor will probably look at this. it is for someone who is paying attention and swinging for the fences. cheryl: we are looking for some deals out there. charles: you look good, by the way. dennis: i have been sick. i think i lost 2 pounds off my double chin. cheryl: a state of emergency to cleared in boston. the flu strain may turn into an epidemic. looking into ways it may help your portfolio.
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it is a showdown between two big hedge fund managers. cheryl: taking a look at how the dollar is faring against other currencies around the world. we will be right back. ♪
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>> asked 24 minutes past the hour, i have your fox news minute. joe biden will be meeting with the nra today. the vice president said he is determined to take urgent action to address gun violence. a commuter bus and a mini school bus collided in old bridge, new jersey, this morning. seven people were injured and hospitalized. there were no children on the school bus. killer whales trapped in the hudson bay ice. they were taking turns bobbing for air out of a single break in eyes over the past two days. villagers were planning a
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rescue. those are your headlines. back to cheryl. cheryl: i love that video. they are all free now. thank you very much. time for your west coast news minute. the california teachers taking its first step to dump investment in companies. it comes after the pension fund discovered it was invested in the company that invested in the newtown connecticut shooting. chris hansen is in discussions to buy the sacramento kings for $500 million. the team may go back to seattle. the kings were moving off the coast. the tweet was later deleted. the family who owned the kings have been unable to strike a deal with sacramento for a new
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deal. tully's coffee may have hit a snag. they say it is now willing to go up $10.6 million for the seattle coffee chain. all parties will be in court this friday to duke it out. that is your west coast minute. dennis: those teachers -- gun stocks will soar because gun sales are up. it seems like everyone is calling in sick from the flu. there may be a way you could make some money on it. cheryl: capitalism lives. adam shapiro chasing down, literally chasing down the latest from the herbalife conference. dennis: first, let's take a look at some of today's s&p winners and losers. ♪ before copd...
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>> one man's suffering is another man's treasure. doctors where the flu wave will turn into an epidemic. we will have stock picks and how you can play the massive flu. "lincoln" cleaning up in the movies. how you can profit. and what could be mcdonald's newest menu item. >> 30 past the hour, stocks every 15 minutes, nicole. nicole: things are improving. back higher again, up 25 points right now, dow jones industrials 13,416. the nasdaq is an improvement
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from what it was an hour ago. a name that is making news, ford, up 2.3% right now. third teen .80 per share. all about them raising their dividends, doubling the quarter dividend, they love to hear that, right? rallying on that news. this represents some business confidence from a ford itself. so it is looking pretty good and hitting a new 52-week high as well. back to you. dennis: thank you, nicole. cheryl: doctors are fearing a national epidemic after boston's mayor declared a public health emergency. dennis: as the flu continues infecting folks in massachusetts and across the nation.
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live at the boston medical center. how bad is it there? >> cheryl and dennis, this is a very serious situation, 700 confirmed cases of the flu across boston compared to 70 at this time last year. a big impact being made on the health centers and hospitals in the city. that is what he boston's mayor and other health officials have declared this public emergency situation. they want to draw attention to this and people to get their flu shots and take extra precaution, don't go to work if they are sick, for example. 18 deaths, four of those occurred here in boston. they're really talking about the seriousness of these numbers. take a listen. >> we have a terrible problem on our hands, lot of people with the flu. the 700 cases are confirmed cases, but there are thousands of other people who are sick
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with influenza like illness. >> compound the situation, officials say this is a particular dangerous type of flu. it is what people across the city are fighting associated with more difficult situations and more severe outcome. cheryl: have some areas of boston and hit harder than other areas? >> health officials say some of the minority areas where they are less employed, poor neighborhoods, here in the city of boston are getting hit harder. the people may feel like you have to go to work even if they are sick. the virus spreading to the coworkers creating a domino effect and a greater impact on hospitals with the medical center this is one of the hospitals that serve these neighborhoods and they say in the last week they have seen 85 cases come in. it is a growing problem and the city officials and health providers trying to get ahead of it.
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cheryl: we will take a look at the business t hospitals are dog right now. thank you very much. many are trying to rebound from the flu outbreak, other investment types are looking at this as a way to make some money. joining us on some flu stocks you should be watching. many investors are wondering which sectors can actually benefit from this. >> i think they will, the drugmakers are really well positioned with their vaccines. a handful of pharmaceutical companies making majority of the vaccines and it is tricky to benefit from the current increased outbreak of flu because the way the flu vaccine is manufactured, a long lag time before it is out there.
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you may see almost all of them being used versus last year a lot of vaccines unused. what is also important. cheryl: i will get back to that in a moment, but i want to take a look at the names and get your take because a lot of these are in partnership with comes to tamiflu, the most widely used vaccine. but many others are also at play. has the trade already been made in th these stocks, or is this a reason to look at them again? >> i think the severity of the flu season is a reason to look at them again because everybody anticipates the flu season with the investment community and everybody expects seasonality of results but the magnitude is much worse than it was last year. typically when we see a short
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clip and increased demand, investors can look through it. what is important is there is technology on the forefront of the next generation of vaccines that can cover a broader spectrum of the flu strain, so that should enable the next generation of vaccines to price them higher in the investment community's love to the increased demand this quarter and into next quarter as a benefit, but it will shine a light on the next generation of vaccines that have a longer runway that should increase valuation of certain stocks. cheryl: more market chatter of rite aid, walgreens, getting a boost not just because of the pharmacy side of the businesses but over the counter. more tissues will be sold because people are sick, you look at something like that we evaluate that sector? >> yeah, definitely. whenever there is an increasing the benefit of utilization increasing within the health
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care system so there should be a nice bullish for a lot of the retail pharmacies especially some of the other companies that make needles. some secondary plays that benefit from increased utilization. sometimes those increased on the outbreak sometimes i looked at by investors. maybe not a word of better stock price for those companies. cheryl: hospital stocks will be another thing to watch. this is really interesting. >> thank you for having me. dennis: eric schmidt wrapping up a controversial trip to north korea. urging them to embrace the internet or face further economic decline. joining former new mexico governor bill richardson on the trip thing he advocated more access to information and a halt
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to missile launches and nuclear test. not sanctioned by the state department. the trip wasn't especially helpful in light of the nation's recent growth rocket test. it turns out ultimately capitalism is opening up china. capitalism business making them wake up. i am glad those guys did that. cheryl: he went to a university, they took pictures, he was a student, the students on the internet and how great this was. most do not have access to the internet at all, if they're using that as propaganda around the world. dennis: by doing that they're storing extra demand. cheryl: worry this could hurt the housing recovery, we will tell you about new regulations on mortgage lending practices. dennis: it is awards season, how you can profit from the oscars coming up. cheryl: i don't even know the
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nominations, you have to fill me in. coming up, take a look at the 10-year treasury.
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>> i'm tracy byrnes with your fox business brief. consumer financial protection bureau issuing new rules in an effort to prevent the last mortgage lending practice is that helped push the u.s.
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economy into a recession. the guidelines released today will force banks to verify a borrower's ability to repay loans. and the rate on a 30-year mortgage has climbed but hovers near the record lows. according to freddie mac the average rate i of 3.4% comparedo the all-time record low of 3.31. the week of november 21. shares of supervalu are soaring led by cerberus capital management. the deals worth $3.3 billion includes 877 stores. that is latest from the fox business network giving you the power to prosper.
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dennis: every movie buff's favorite time of year, oscar season. nominations coming out this
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morning and leading the pack with 12 nominations is steven spielberg civil war saga "lincoln." how much do translate to wall street. we're joined by fox news dr. oscar. and senior analyst for s&p capital. let's start with you because i know you have an s. berge two obsession with this film. >> i have been doing oscar films for many years now. the best film has to be the snub toward ben affleck director nomination on "argo." who's donated golden globe, i thought he was a shoo-in next month for the oscars. this is a great injustice, i'm more upset than ben affleck. dennis: what about kathryn bigelow.
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i thought it was because hollywood feels like you endorsed torture, what do you think about that? >> directors nominate directors. they have snubbed big-name directors, spielberg himself they stop in 1985 "the color purple," barbra streisand was snubbed twice. they did not do a real achievement, a competent after ""the hurt locker"." that is what is a bit of a disappointment. dennis: obviously "lincoln" is out from disney for such a huge company it is not like they will get a stock bump if "lincoln" wins, will they? >> disney has to be ecstatic. three out of five titles in the animation category. this is the first time in years you have disney dominating.
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and garnering all those nominations. dennis: for nominations, the youngest actress ever nominated, a nine-year-old girl. >> what would the nomination noe without this kind of surprises. and top films of the year. "the avengers," ""the hunger games"." dennis: the new james bond film got overlooked. you know more about this than we do. >> there was talk that "skyfall" might get the best film nomination. it had received 5% of the votes on the ballot. and "skyfall" is a very well-liked film, academy award-winning director. and in oscar friendly cast, i think in this case "skyfall" was
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in many ballots but not high enough to secure the bid. five nominations including the title song. no real surprise there. dennis: and who will win best film? >> i think the fact "argo" was left out of the directing, could see a backlash. only one film has one best "argo" without winning best director, that was "driving ms. daisy." i think "lincoln." dennis: who do you think which mark >> i think "argo" has a good chance. but oscar bounce is not what it used to be on wall street. it is far less, but it's in the best picture. dennis: thank you very much. cheryl: can't wait to see it on tv. every 15 minutes, stocks now. a lot of this cross in the day on wal-mart, how is the stock doing?
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nicole: looking at wal-mart, not too far off the unchanged line. u.s. lawmakers have released an e-mail that seems to show that wal-mart executives including chief executive actually knew about some allegations of bribery that gave back to 2005 pertaining to some bribery as well as mexico officials to change the zoning maps to make it easier for wal-mart to open up other stars, a store near the ancient pyramid. the executives over at wal-mart say they did not recall the mention of the bribery allegations and now the company would respond to questions about this matter. the stock is down .8%. back to you. cheryl: thank you very much. the herbalife investors conference has turned into a defense of a company's overall business model. dennis: coming as two hedge fund
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managers battle it out over the stock that is a pyramid scheme. adam. adam: billions of dollars are at stake. purchasing square, betting a billion dollars in the pyramid scheme, daniel low says this is a viable company, and of course the two-hour presentation from the ceo, michael johnson, in which they laid out point by point herbalife is not a pyramid scheme. and investors believe it. here's what one of them told me. >> they point by point went through everything and there was absolutely nothing after they diffuse every single one of them. one place they really scored a lot of points was they brought in a professor from northwestern and the kellogg school business and she went through all the
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things you would think about for a pyramid scheme and basically these guys are clean. they are a good, solid company. a good way to get products to market, not really getting all their compensation from recruitment, they're getting from selling product. adam: they're talking about multilevel marketing. a lolots of companies do that. it is the core of the question, and who do you believe. says this is a pyramid scheme but herbalife making the case it is not. back to you. cheryl: adam shapiro, thank you very much. mcdonald's is test flying chicken wings. jeff flock sampling things in chicago. jeff: at the famed rock 'n roll mcdonald's. we are testing wings.
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the latest thing for mcdonald's test market only here in chicago, the mighty wings. we will put them up against hooters. and we will tell you if this is going to fly. stay tuned. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.
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cheryl: mcdonald's trying out an unusual item on its menu. chicken wings. dennis: restaurant getting mighty wings a test run in chicago. jeff flock is there from chicago with a taste test. jeff: we asked for cooperation for mcdonald's to come in and test, they said no, you can't, so it came to the rock 'n roll mcdonald's and doing our own
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taste test. victims here today for us. the whole deal about mcdonald's wings, they tried in 1990. we haven't revealed which is which. can you tell the hooters, domino's, mcdonald's? we will find out in a second, but which one do they like better? they tried it in 1990, it was never a full-time menu item. it went well enough in atlanta are now testmarketing in chicago. have you been through all three? now, tell me, rank them in order which would you say is the best? >> i would say the first one. >> what is second-best? >> the middle one. or the third one is second-best.
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in the middle would be the third. >> let me reveal. number one, hooters. number two, mcdonald's. number three, domino's. now i have to ask you? >> i like mcdonald's the best. it is crunchy, tasty, spicy, i like that when the best. jeff: there you go, number two, one of them at number one. i would say that is a pretty good showing for mcdonald's. wings are getting fairly inexpensive in the market. so many people are buying wings these days in offering wings, they cost a lot. they're trying to come up with a four winged chicken but they haven't done so yet. he picked hooters and she picked mcdonald's, isn't that funny?
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cheryl: thank you very much for that live taste test in chicago. dennis: president obama namin nominating his pick for treasury secretary. cheryl: we will bring that to you live. and jack lew is not the only nominee. more on the oscar nominations and the snobs, ben aflac. stay with us.
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>> announcer: you never know when, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little piece of information and they can open bogus accounts, stealing your credit, your money and ruining your reputation. that's why you need lifelock to relentlessly protect what matters most... [beeping...] helping stop crooks before your identity is attacked. and now you can have the most comprehensive identity theft protection available today... lifelock ultimate.
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so for protection you just can't get anywhere else, get lifelock ultimate. >> i didn't know how serious identity theft was until i lost my credit and eventually i lost my home. >> announcer: credit monitoring is not enough, because it tells you after the fact, sometimes as much as 30 days later. with lifelock, as soon as our network spots a threat to your identity, you'll get a proactive risk alert, protecting you before you become a victim. >> identity theft was a huge, huge problem for me and it's gone away because of lifelock. >> announcer: while no one can stop all identity theft, if criminals do steal your information, lifelock will help fix it, with our $1 million service guarantee. don't wait until you become the next victim. you have so much to protect and nothing to lose when you call lifelock now to get two full months of identity theft protection risk free. that's right, 60 days risk-free. use promo code: gethelp. if you're not completely satisfied, notify lifelock and you won't pay

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